Those who know me know that I’m passionate about teaching kids about personal finance. I’m also a big Red Sox fan, so I was pleased to hear that one of my favorite players was teaming up with a local bank, Salem Five, to help educate kids about money.
I don’t usually print press releases or emails verbatim, but in this case, I think it’s appropriate:
“Salem Five is focused on educating kids about financial responsibility through their Gold Star Saver program. The Gold Star Saver is an interest-bearing savings account with no fees for children under the age of 18 and is co-signed for by parents. Salem Five will match the first $10 deposited and provide an ATM card, with parental approval. The new website takes the child’s savings account to the next level, providing an interactive place to explore personal finance topics.”
Salem Five also put together a survey, the results of which revealed effective ways to educate kids about money, including:
1. Kids listen to you
· 91% of kids say their parents teach them about money.
· 35% of kids say they would save better if they knew why they were supposed to save money.
2. Don’t feel bad about dragging them to the bank… they learn
· 91% of parents use life experiences to teach kids about money.
3. When you are at the bank, open a kid’s savings account
· 58% of kids ages 7-12 have a savings account, average age when opened: 5 yrs old.
· Of kids who have savings accounts:
· 98% understand where money comes from
· 95% understand the importance of saving for the future
· 90% have a good understanding of money/finances
4. Learning about money can be fun
· 64% of kids like to play games that teach about money
· Of kids that like to play games to learn about money:
· 83% like to do things to earn their own money
· 72% wish they had their own bank account
5. Make communicating with your kids about money a priority
· 29% of children pay attention all the time when their parents talk to them about money.
· 46% of these good listeners are children of parents who make communication a top priority.
· 86% of kids who have parents that make communicating about money a priority say they know how to save for something big
The Gold Star Saver site (www.salemfive.com/goldstarsaver) offers the following features for kids:
· Dustin Pedroia videos with his personal financial tips and experiences
· Tools and calculators to help plan for saving, giving and spending
· A Message Board for sharing tips or asking Salem Five bankers questions
· Links to on-line games, books and other learning resources
· Financial terms glossary for kids
· Real-time account access
Win it! Salem Five is offering one of our readers a Dustin Pedroia autographed baseball! To enter, leave us a comment below letting us know what you do now to get your kids to save? Contest ends 8/5/10 at 11:59 ET. US Winners Only. More rules can be found here.
{ 33 comments… read them below or add one }
For each of our kids, we have a savings account (the book type) for each of them. They each have chores based on thier ages. If they complete their chores, on payday (Sundays), they each get spending money. Out of their spending money, they put away 1/3 towards future (long term) savings, that goes into their savings book, 1/3 goes towards saving for items that they want and 1/3 is for them to spend on whatever. We started this a couple of years ago and it really works for us. Our oldest son (13) really loves saving now. Our younger children also seem to enjoy it.
Thanks so much for this wonderful giveaway. What a great prize.
rickpeggysmith(at)aol(dot)com
what a fab prize. I hope I win. If I do, I will donate the ball to an auction for Young Life here in Yelm in November. Fingers crossed!
Whenever the kids get a money gift, I have them give me part of it for their savings account.
I’m teaching our four year old to save by using a piggy bank I bought her for Christmas. Everytime we come home from shopping and have leftover change, I always make her put it in her piggy bank and explain to her why it’s important to save.
My wife and I have established a ticket system to teach our kids about saving. When they are good, or do something helpful they earn tickets. (Simple admit one tickets that we bought) They have the opportunity to turn them in to receive prizes. The best prizes cost many tickets, therefore creating the incentive to save them and in turn, teaching them about saving money.
I opened my kids a bank account and every time i give them allowance i make them put 1/4 of it into savings and half of any holiday money, i explained by time they go to college they wont have to worry about finding a way to pay for it
I have always taught my children the importance of saving, my oldest has now saved enough to live in his own condo, and my younger one has continued the family tradition…she saves everything she earns or receives as a gift….she has even used her saved money to buy gifts for a very sick friend.
I think the best way to teach kids about saving is to have them put money aside when they decide they want something. If they always put a portion of their allowance into their piggy bank or account, then they can buy a bigger item that they want on their own.
the boys each have a piggy bank and savings account. Whenever they receive money they put a portion in their piggy bank and put asside a portion to save up for the ONE thing on their wish list. When the piggy bank gets full they take it to the bank and it goes into their savings account.
I had my son save up over $1000 that he could not touch without my signature. We then went and took $1000, leaving the remaining balance for him to add to and invested the $1000 in a fund that would teach him about investing as well.
The kids have a saving accounts that can only be touched for very special reason. We discuss it as a family as to whether or not we will allow the accounts to be touched. They receive this money for chores they do around the house.
My gransons have a bank an an they save their change or dollars,an then went we get enought we make a trip to the bank to put in their savings account,they love to watch the amounts grow,an as of now dont want to take any out,which is a good sign in my book!
vlbelk(at)hotmail.com
I like to make my kids take what ever money they get and put half into a savings account They forget about it and it starts adding up after a while they might not like it now but later when they get old enough maybe they will see a little goes along way in time
I teach the little guy about saving by having him save for attainable things. Half of his money goes into a saving account, a quarter is for him to do as he pleases with, and the other quarter is saved for bigger purchases of his wants. He appreciates toys way more when he has to save up for them himself.
My wife and I have 5 kids and savings is an important topic for all our family. Saving is a key element, but so is sharing with those in need and understanding the cost of things. As a result, each of our children have a savings bank with three locations to deposit a part of their regular allowance. Just as important as savings is – we also stress that 10% should also be set aside to share with others be it the needy or the Church or the latest tragedy. Fortunately our 12 and 8 year olds have done a great job setting an example and making this a family habit! Also – they are all huge fans Dustin Pedroia!
I’m a big saver and my family knows it, so my children (6 years old and 4 years old) enjoy copying me and they tell me to put their birthday money into their savings account.
My children are well taken care of as far as a home clothing, food etc.
And every year we amke purchases for the family such as a AG Pool or something for our familyroom.
But if it is something that they want because their friends have it or just because it just hit the market then they have to save their allowance to buy it. Most times when they save enough they have lost their interest in that item and deposit the money in their savings account for something later.
My older children are responsible for paying for half of the car that they want when they get their license and also one quarter of their insurance. So they are both excellent about saving and not spending on unnecessary items.
Thank you so much for the giveaway.
jweezie43[at]gmail[dot]com
My daughter has a special piggy bank that has 3 slots, savings, donation, and spending money. She enjoys saving with this piggie, it is a great invention!
both have their own piggy banks and they love putting coins in rather than spending it (at least right now)
It’s difficult because when our 10 year old has money he wants to spend it. That’s why we set up a savings account for him.
I use a passbook account
I make sure to share how much common, everyday items cost so that they realize quickly even the basics challenge one’s wallet.
My son has a savings account and my daughter has a stash of money in a piggy bank. We have been teaching them how to save money when shopping by using coupons and pairing coupons up with already existing sales to save even more money. They are leaning how much things cost and how many more things you can get with the same amount of money if you just take the time and make the effort. Of course they also learn that the more money mom and dad save the more money that can be put into their savings account and piggy banks.
Every night when we get home we have our daughter put any change she has in a piggy bank plus any birthday money she gets we have her put in there also.
indyfree07@hotmail.com
Any money my daughter receives currently goes into savings. We also contribute money into her 529 college savings plan and we hope to explain the importance of this when she gets a little bit older.
I don’t have kids yet, but one day when I do… I will teach my kids to save by making them set aside half of what they earn. They won’t be allowed to use that saved money for toys or small purchases. This will show them that it is smart to look to the future with your finances, not to spend recklessly in the here and now.
We have a savings account for our kids and when they get birthday money or allowance they put most of it in the savings. They also have a small paper route once a week which they put in their savings account. They have their own deposit slips for the bank that they fill out with cartoon characters on it.
i have a piggy bank for each of them
amy16323(at)gmail(dot)com
I taught my son to save by giving him a notebook as a “bankbook”. It let him see how the money increased with each deposit and “interest”.
we give them an allowance and have them save 10% of it
They have piggy banks and bank accounts for saving money.
I am learning them about saving. I teach them about money and starting a savings account.
I have no kids.